Google takeover pays off for Motorola employees, too

CEO Sanjay Jha isn't the only one who's going to make out on his $12.5-billion sale of Motorola Mobility Holdings to Google. The all-cash deal also will provide a long-awaited reward for Motorola employees who survived the double whammy of recession and restructuring.

Motorola Mobility accepted a $40-a-share offer last week from Google. That should put employees whose stock options have been worthless into the black. In June 2009, Motorola allowed employees to exchange options at a rate of roughly 2.25 old ones for one new one. After Motorola Mobility separated from the public-safety business known as Motorola Solutions Inc. in January, those options were priced at $24.24 each, for a potential 39% gain. Some unvested options and restricted stock awards will be exchanged for Google stock, according to securities filings. Becoming a Google employee also will have its perks. Google, whose shares have traded between $450 and $639 over the past year, likely will hand out options and restricted stock as incentives to keep Motorolans in key positions in the fold.